Redevelopment Powers & Entities Summary of Redevelopment Powers Issue bonds (section 29 of the LRHL). Acquire property (section 22 of the LRHL). Acquire by eminent domain any land or building identified for acquisition in the redevelopment plan. Clear any area and construct or reconstruct infrastructure and site improvements. Contract for professional services. Contract with public agencies or redevelopers for: Planning, re-planning, construction, or undertaking of any project; Collection of revenue to defray the costs of the redevelopment entity; Loans or other financial assistance to redevelopers; Capital grants to redevelopers; Opening, grading or closing of streets, roads, roadways, alleys, or other places; Acquisition of property options or property rights or for the furnishing of property, facilities or services. Lease or convey property or improvements without public bidding. Gain access to buildings or property to conduct investigations or make surveys, sounding or test borings. Relocate residents, industry or commerce displaced from a redevelopment area. (1) plan for voluntary repair and rehabilitation of buildings and improvements; and (2) plan for the enforcement of regulations relating to use and occupancy, and to the repair, rehabilitation, demolition or removal of buildings and improvements. Request designation of areas in need of redevelopment or rehabilitation and make recommendations for the redevelopment or rehabilitation of such areas. Study the recommendations of the planning board or governing body for redevelopment of the area. Publish and disseminate information concerning any redevelopment area, plan or project. Do all things necessary or convenient to carry out its powers. While eminent domain powers are certainly fundamental to the redevelopment of an area, the fact that a redevelopment entity has the power usually compels most affected property owners to negotiate rather than to litigate and most actions are settled out of court. It is also important to note that the redevelopment entity also has the power to acquire property by outright purchase and to receive property by transfer from another public entity or by donation. There are lesser-known redevelopment powers that are actually used much more frequently than eminent domain. The most important of these is the power to transfer property without public bid. Because redevelopment entities are in essence in the real estate business, their ability to be able to package public properties with acquired private properties would be impeded by the requirement to advertise the public land for auction prior to the sale. In fact such a bidding requirement would actually be contrary to the effective assembly of land for redevelopment and could be fatal to a redevelopment agreement because a key property could go to the highest bidder, who may not be the designated redeveloper. Redevelopment Entities Redevelopment entities range from the governing body to a newly created redevelopment agency to an existing housing authority or county improvement authority. There are advantages and disadvantages to each type of entity and there is no single right or wrong decision. It is also important to remember that, while there can only be one municipal or county redevelopment agency, more than one municipal or county redevelopment entity may operate within the same town or county. However, the governing body has the sole jurisdiction of designating which redevelopment entity will be charged with implementing each redevelopment plan that it adopts. Creation of a Redevelopment Agency Advantages: Focuses efforts on redevelopment De-politicizes the process Adds specialized and professional expertise Disadvantages: Isolates the redevelopment process from the public Adds administrative costs and mandatory training requirements Requires NJDCA approval Exising Governing Body Advantages: Single purpose redevelopment "Hands-on" municipal involvement No need to create more administrative positions Disadvantages: May be confusing to the public Wearing too many hats Can politicize redevelopment process Exising Housing Authority Advantages: Utilization of existing staff and commissioners Coordination between housing and redevelopment activities and policies Additional NJDCA approval unnecessary Disadvantages: Utilizes existing staff and commissioners Confuses housing management with redevelopment activities Potential conflicts between housing policy and relocation objectives Additional mandatory training requirements for commissioners and executive directors County Improvement Authority The Local Housing and Redevelopment Law allows for the designation of a county improvement authority as the redevelopment entity for a municipal redevelopment plan. While this option is not utilized very often, more and more towns are looking to their county counterparts as a resource in redevelopmpent matters.